BlackRock Manager Bets on Intel: Five Spot

NEW YORK (TheStreet) -- Kevin Rendino, manager of the BlackRock Basic Value Fund(MDBAX Quote), says information technology is a winning sector though utilities may suffer a power outage.

The fund has risen 14% this year, better than 75% of its Morningstar(MORN Quote) large-cap value peers. Over the past three years, the fund has lost an average of 6.5% annually, better than 76% of its rivals.

Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks in five fast and furious questions.

Are you a bull or bear?

Rendino: Looking out over the remainder of 2009, we are cautiously optimistic. Market volatility is likely to remain elevated, driven by mixed, but improving economic data. BlackRock(BLK Quote) Basic Value is positioned to utilize this volatility to continue our cyclical positioning.

We take a contrarian approach to stock selection, which essentially means buying stocks when everyone else is avoiding them. This clearly was the case in the fall of 2008 and early 2009, when investors were selling risky assets (i.e., stocks) to buy "riskless" assets (i.e., Treasuries). This created a lot of opportunities for stock investors -- more opportunities than I've ever seen in my more than 20-year career.

What is your top stock pick?

Rendino: Our favorite stock is Travelers Insurance(TRV Quote), which meets the primary elements of our stock-selection process, which focuses on three key criteria: company management, franchise value and a catalyst to push the stock higher.

We don't purchase shares of any company if we haven't met with the management team. This year, our team will participate in roughly 2,000 management meetings. As for franchise value, we tend to own market leaders -- companies that are No. 1 or No. 2 in their lines of business.